Insurance plays a crucial role in financial planning, and this topic has appeared in IELTS Writing Task 2 questions with increasing frequency in recent years. Based on analysis of past exam trends, it’s likely that questions related to insurance and financial planning will continue to be prevalent in future IELTS tests. Let’s examine a relevant question that has appeared in recent exams:
Some people believe that it is important to have insurance for all aspects of their lives, while others think insurance is a waste of money. Discuss both views and give your own opinion.
Analyzing the Question
This question requires candidates to:
- Discuss the importance of having comprehensive insurance
- Present arguments against insurance as a waste of money
- Provide a personal opinion on the matter
Now, let’s look at sample essays for different band scores, starting with a high-scoring response.
Sample Essay 1 (Band 8-9)
Insurance is a contentious topic in personal finance, with some advocating for comprehensive coverage and others viewing it as an unnecessary expense. This essay will examine both perspectives before presenting my own stance on the matter.
Proponents of extensive insurance argue that it provides crucial financial protection against unforeseen circumstances. Life is unpredictable, and having insurance for various aspects such as health, property, and life itself can offer peace of mind and financial security. For instance, health insurance can prevent crippling medical debts in case of serious illnesses or accidents. Similarly, home insurance safeguards one’s most valuable asset against natural disasters or theft. Moreover, life insurance ensures that dependents are financially supported in the event of the policyholder’s untimely death.
On the other hand, critics contend that insurance is often a waste of money. They argue that the likelihood of claiming insurance is relatively low, and premiums paid over time can accumulate to substantial amounts that could have been invested more profitably elsewhere. Additionally, some insurance policies have complex terms and conditions that make it difficult to claim benefits when needed. There is also a concern that having insurance might lead to moral hazard, where individuals engage in riskier behavior knowing they are covered.
In my opinion, while it is true that not all insurance policies are equally beneficial, having a well-thought-out insurance portfolio is an essential component of sound financial planning. The key lies in striking a balance between adequate coverage and affordable premiums. It is crucial to carefully assess one’s risks and financial situation to determine which types of insurance are truly necessary. For example, health and life insurance may be more critical for those with dependents, while property insurance is essential for homeowners.
In conclusion, while the debate on insurance’s value continues, I believe that when chosen judiciously, insurance serves as a vital financial safety net. It is not about insuring every aspect of life, but rather about protecting against significant risks that could otherwise lead to financial ruin.
(Word count: 329)
Insurance and financial planning concept
Explanation of Band 8-9 Score
This essay demonstrates several characteristics of a high-scoring response:
Task Achievement: The essay fully addresses all parts of the task, discussing both viewpoints and clearly stating a personal opinion.
Coherence and Cohesion: The essay is well-organized with clear paragraphing and effective use of cohesive devices. Each paragraph has a clear central topic.
Lexical Resource: The essay uses a wide range of vocabulary accurately and appropriately, including topic-specific terms like “moral hazard” and “financial security.”
Grammatical Range and Accuracy: The essay demonstrates a wide range of grammatical structures used accurately and flexibly.
Development of Ideas: Ideas are fully developed with relevant examples and explanations.
Sample Essay 2 (Band 6-7)
Insurance is a topic that many people have different opinions about. Some think it’s very important to have insurance for everything in their lives, while others believe it’s just wasting money. In this essay, I will discuss both views and give my own opinion.
People who support having a lot of insurance say it’s important for protection. Life can be unpredictable, and insurance can help when unexpected things happen. For example, if someone gets sick, health insurance can pay for expensive medical treatments. Home insurance can help if there’s a fire or theft. Life insurance can support a family if the main earner dies. These kinds of protection make people feel safer and more secure.
However, other people think insurance is a waste of money. They say that most of the time, people don’t need to use their insurance, so they’re just paying money for nothing. Insurance can be expensive, especially if you have many different types. Some people also think that insurance companies make it hard to get money when you need it, with lots of rules and paperwork. They believe it’s better to save money instead of buying insurance.
In my opinion, I think some insurance is necessary, but maybe not for everything. It’s important to think about which risks are the biggest in your life and get insurance for those. For example, health insurance is probably a good idea for everyone, but not everyone needs pet insurance. It depends on your situation and what you can afford.
To conclude, while there are good arguments on both sides, I believe that having some insurance is a smart part of managing money. The key is to choose carefully and not overspend on unnecessary coverage.
(Word count: 293)
Explanation of Band 6-7 Score
This essay demonstrates characteristics of a mid-range score:
Task Achievement: The essay addresses all parts of the task, presenting both viewpoints and a personal opinion. However, the ideas could be more fully developed.
Coherence and Cohesion: The essay is generally well-organized, but the use of cohesive devices is less sophisticated compared to the Band 8-9 essay.
Lexical Resource: The vocabulary is adequate for the task, but lacks the precision and sophistication of higher band scores.
Grammatical Range and Accuracy: The essay uses a mix of simple and complex sentence structures with generally good control, though there’s less variety compared to the Band 8-9 essay.
Development of Ideas: Ideas are relevant and supported, but could be elaborated further with more specific examples or deeper analysis.
Why financial planning is crucial for long-term success is closely related to the role of insurance in protecting one’s financial future. As we’ve seen in these essays, understanding the balance between risk and protection is key to effective financial management.
Key Vocabulary
- Contentious (adjective) – /kənˈtenʃəs/ – causing or likely to cause disagreement
- Comprehensive (adjective) – /ˌkɒmprɪˈhensɪv/ – including or dealing with all or nearly all elements or aspects of something
- Crippling (adjective) – /ˈkrɪplɪŋ/ – causing a severe and almost insuperable problem
- Safeguard (verb) – /ˈseɪfɡɑːd/ – protect from harm or damage with an appropriate measure
- Moral hazard (noun) – /ˈmɒrəl ˈhæzəd/ – lack of incentive to guard against risk where one is protected from its consequences
- Portfolio (noun) – /pɔːtˈfəʊliəʊ/ – a range of investments held by a person or organization
- Judiciously (adverb) – /dʒuːˈdɪʃəsli/ – with good judgment or sense
Diverse insurance portfolio in financial planning
These vocabulary items are crucial for discussing insurance and financial planning in IELTS Writing Task 2. Understanding and using them correctly can significantly enhance the lexical resource component of your essay.
Conclusion
The role of insurance in financial planning is a relevant and important topic for IELTS Writing Task 2. As we’ve seen, it allows for discussion of various perspectives and requires critical thinking about personal finance. To prepare for similar questions, consider practicing with these potential topics:
- The impact of technology on insurance industry
- The role of government in providing social insurance
- Ethical considerations in the insurance business
- The future of insurance in a changing global economy
Remember, the key to success in IELTS Writing Task 2 is not just about knowledge, but also about how well you can structure your arguments and express your ideas clearly and coherently. The importance of financial literacy in today’s world cannot be overstated, and understanding insurance is a crucial part of this literacy.
We encourage you to practice writing your own essay on this topic and share it in the comments section below. This active practice is one of the most effective ways to improve your writing skills and prepare for the IELTS exam.